Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here is one volatile stock that could deliver huge gains and two that could just as easily collapse.
Two Stocks to Sell:
Sprout Social (SPT)
Rolling One-Year Beta: 1.15
Founded by Justyn Howard and Aaron Rankin in 2010, Sprout Social (NASDAQ: SPT) provides a software as a service platform that companies can use to schedule and respond to posts on major social media networks like Twitter, Facebook, Instagram, Youtube and LinkedIn.
Why Is SPT Not Exciting?
- Rapid expansion strategy came at the expense of operating margin profitability
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 7.2% for the last year
Sprout Social’s stock price of $18.93 implies a valuation ratio of 2.4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than SPT.
UiPath (PATH)
Rolling One-Year Beta: 1.41
Started in 2005 in Romania as a tech outsourcing company, UiPath (NYSE: PATH) makes software that helps companies automate repetitive computer tasks.
Why Are We Hesitant About PATH?
- Average billings growth of 4.2% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
- Poor expense management has led to operating margin losses
UiPath is trading at $12.20 per share, or 4.2x forward price-to-sales. If you’re considering PATH for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Comfort Systems (FIX)
Rolling One-Year Beta: 2.15
Formed through the merger of 12 companies, Comfort Systems (NYSE: FIX) provides mechanical and electrical contracting services.
Why Are We Bullish on FIX?
- Demand is greater than supply as the company’s 29.5% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
- Share repurchases over the last two years enabled its annual earnings per share growth of 69.7% to outpace its revenue gains
- Rising returns on capital show management is finding more attractive investment opportunities
At $689 per share, Comfort Systems trades at 34.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
